Should You Purchase Your Solar Panel System on Long Island?
Although the upfront costs of a solar system could make a leasing company’s sales pitch pretty appealing: Pay little or nothing upfront and save hundreds on average. We have all heard these sales pitches promising zero out of pocket and savings for years to come. Ultimately, your savings will be modest at best compared to a full outright purchase. That is why here at Sunshine Plus, we pride ourselves in only providing systems that are bought by the home and or business owner.
At Sunshine Plus, from the very first step, we provide all the facts about ownership and the multiple roads to get there. We will provide all ways to purchase your system such as solar loans, providing information on tax credits, and other programs available for NYS residents.
Here are 5 reasons why leasing a solar system should NOT be on your to-do list:
- You Lose Control of Your Roof
Leasing companies want to maximize their profit, so there’s a chance you could wind up with more panels than you want and that they could be installed in highly visible places, such as facing the street without any regard to appearance.
- Leases Can Scare Off Home Buyers
If you put your house/business on the market before the lease is up (usually 20 years), you will either have to buy out the lease or the person purchasing your home will have to assume it – which some are reluctant to do.
- Your Savings Will Be Modest
Individuals who lease their solar systems save far less than those who buy them outright or with a loan (they also miss out on federal tax benefits and state incentives). Many leases contain an escalator clause that can further reduce savings by increasing payments by 3% per year.
- You Never Own the Panels
In fact, you will have to either return your solar panels after the end of the lease term or purchase them from the leasing company at the end of your lease.
- You Can’t Receive Federal & State Tax Incentives
If you lease instead of buy, you are potentially adding more of an expense and giving away, the federal tax credit and other state/local incentives. In 2019, a home or business owner will receive a federal tax credit of 30% off of the total cost of their solar system when bought outright. When leasing your system, the solar company itself instead gets these savings. So, these companies use your roof and then reap the savings!
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